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Культура Документы
12/19/13 3:48 PM
$36,157
$37,795
2011
2012
2013
$2,800
$3,065
$3,537
2011
2012
2013
SVA (MM)
$2,527
$2,776
$3,390
2011
2012
2013
$1.52
$1.79
$1.99
2011
2012
2013
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70%
$2.8
$2.6
R&D Spending
$1.2
$1.4
$1.5
Capital Expenditures
$1.1
$1.4
$1.1
2011
2012
2013
2050
$50 B
2011
2012
2013
2018
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CHAIRMANS MESSAGE
In 2013, John Deere had its best year yet. We delivered record
income for the third successive year and the eighth time in the
last 10 years. The company also generated its highest-ever
operating return on operating assets* (OROA), a reflection of
the solid execution of our business plans.
At the same time, we expanded our worldwide footprint and
continued an aggressive launch of advanced new products.
Our commitment to being a good corporate citizen and
employer led to higher levels of volunteerism and engagement.
For the fiscal year, Deere reported income of $3.54 billion on net
sales and revenues of $37.8 billion. Income was up 15 percent
on a 5 percent increase in sales and revenues. Earnings per
share rose fully 19 percent, reflecting the benefit of fewer shares
outstanding due to continued share repurchases.
The years results produced healthy levels of economic profit, or
Shareholder Valued Added* (SVA), which reached $3.39 billion.
SVA operating profit less an implied capital charge is the
primary measure used in managing the company and making
investment decisions.
Operating cash flow totaled $3.25 billion for the year. These
dollars funded important geographic expansions and delivered
value directly to investors as dividends and share repurchases.
Dividend payments and buybacks totaled $2.28 billion for the
year. Since 2004, the company has increased the quarterly
dividend rate on 11 occasions and repurchased about 180 million
shares of stock. In a vote of confidence in the companys future,
Deeres board of directors earlier this month authorized
additional share repurchases of up to $8 billion.
Customers appreciate the fast hydraulic flow of the productive
532-horsepower 870G LC excavator. It saves them fuel,
time and money, making it a perfect choice for excavating
and truck-loading operations.
4
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* OROA and SVA are non-GAAP financial measures. See page 14 for details.
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Samuel R. Allen
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2013 HIGHLIGHTS
DEERE ENTERPRISE
Demand for farm machinery
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SVA (MM)
$2,527
$2,776
$3,390
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2011
2012
2013
0DLQWDLQLQJFRPPLWPHQWWRUHWXUQFDVKWRLQYHVWRUVFRPSDQ\
UDLVHVTXDUWHUO\GLYLGHQGUDWHVKDUHEX\EDFNVFRQWLQXH
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EQUIPMENT OPERATIONS
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SVA (MM)
$2,294
$2,602
$3,147
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$2,245
$2,534
$3,215
2011
2012
2013
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SVA (MM)
2011
2012
2013
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)LQDO7LHU(86WDJH,9DQG&DOLIRUQLD$LU5HVRXUFHV%RDUG
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SVA (MM)
$49
$68
$(68)
$250
$200
$150
$100
FINANCIAL SERVICES
Growth in credit portfolio
and higher crop insurance
margins lead to record
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2008
Deere & Company
At October 31
2009
2010
S&P 500
2008
2009
2011
2012
2013
2010
2011
2012
2013
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SVA (MM)
$233
$174
$243
2011
2012
2013
69$KLWVUHFRUGPLOOLRQ
Portfolio of receivables and
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Continuing record of
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favorable levels of past dues and writeoffs.
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FINANCIAL REVIEW
TABLE OF CONTENTS
Shareholder Value Added (SVA) essentially, the difference between operating profit
and pretax cost of capital is a metric used by JohnDeere to evaluate business results
and measure sustainable performance.
Managements Discussion
and Analysis ............................ 15
Reports of Management
and Independent Registered
Public Accounting Firm............ 26
Consolidated Financial
Statements ............................ 27
Notes to Consolidated
Financial Statements .............. 32
The amount of SVA is determined by deducting the asset or equity charge from
operating profit.
2011
2013
2011
2012
2013
Net Sales
29,466 33,501 34,998
Operating Profit
3,839 4,397 5,058
Average Assets
With Inventories @ Std Cost 12,875 14,965 15,924
With Inventories @ LIFO
11,516 13,594 14,569
OROA % @ LIFO
33.3
32.3
34.7
Asset Turns (Std Cost)
2.29
2.24
2.20
Operating Margin %
x 13.03 x 13.12 x 14.45
OROA % @ Standard Cost
29.8
29.4
31.8
$MM
2011 2012 2013
Net Sales
Operating Profit
Average Assets
With Inventories @ Std Cost
With Inventories @ LIFO
OROA % @ LIFO
Asset Turns (Std Cost)
Operating Margin %
OROA % @ Standard Cost
$MM
5,372
392
6,378
476
5,866
378
2,858
2,649
14.8
1.88
x 7.30
13.7
2011
3,401 3,713
3,172 3,466
15.0
10.9
1.88
1.58
x 7.46 x 6.44
14.0
10.2
2012 2013
2,858
392
-343
49
3,401
476
-408
68
3,713
378
-446
-68
2011
2012
2013
471
460
565
3,194 3,470 4,073
14.7
13.3
13.9
2011 2012 2013
2011
2012
2013
Net Sales
24,094 27,123 29,132
Operating Profit
3,447 3,921 4,680
Average Assets
With Inventories @ Std Cost 10,017 11,564 12,211
With Inventories @ LIFO
8,867 10,422 11,103
OROA % @ LIFO
38.9
37.6
42.2
Asset Turns (Std Cost)
2.41
2.35
2.39
Operating Margin %
x 14.31 x 14.46 x 16.06
OROA % @ Standard Cost
34.4
33.9
38.3
$MM
2011 2012 2013
Average Assets @ Std Cost
Operating Profit
Cost of Assets
SVA
FINANCIAL SERVICES
Operating Profit
725
712
870
Average Equity
3,194 3,470 4,073
Operating Profit
725
712
870
Cost of Equity
-492 -538
-627
SVA
233
174
243
The Financial Services SVA metric is calculated on a
pretax basis.
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Net income of the financial services operations attributable to Deere & Company in 2012 decreased to $460 million,
compared with $471 million in 2011. The decrease was primarily
a result of increased selling, administrative and general expenses,
higher reserves for crop insurance claims and narrower financing
spreads, partially offset by growth in the credit portfolio and a
lower provision for credit losses. Additional information is
presented in the following discussion of the Worldwide
Financial Services Operations.
The cost of sales to net sales ratio for 2012 was 74.6 percent,
compared with 74.4 percent in 2011. The increase was primarily
due to higher production costs, increased raw material costs and
unfavorable effects of foreign currency exchange, partially offset
by improved price realization.
Finance and interest income increased in 2012 due to a
larger average credit portfolio, partially offset by lower average
financing rates. Other income increased primarily as a result of
an increase in service revenues and insurance premiums and
fees. Research and development costs increased primarily as a
result of increased spending in support of new products and
more stringent emission requirements. Selling, administrative
and general expenses increased primarily due to growth and
incentive compensation expenses. Interest expense increased
due to higher average borrowings, partially offset by lower
average borrowing rates. Other operating expenses increased
primarily due to higher crop insurance claims and costs and
depreciation of equipment on operating leases.
The company has several defined benefit pension plans
and defined benefit health care and life insurance plans.
The companys postretirement benefit costs for these plans in
2012 were $511 million, compared with $603 million in 2011.
The long-term expected return on plan assets, which is
reflected in these costs, was an expected gain of 8.0 percent in
2012 and 2011, or $887 million in 2012 and $906 million in
2011. The actual return was a gain of $849 million in 2012
and $695 million in 2011. Total company contributions to the
plans were $478 million in 2012 and $122 million in 2011,
which include direct benefit payments for unfunded plans.
These contributions also included voluntary contributions to
plan assets of $350 million in 2012.
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Prime-1
A-1
Stable
Stable
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Less
More
than 2&3 4&5 than
1 year
years years 5 years
On-balance-sheet
Debt*
Equipment operations...... $ 5,967 $ 1,081 $ 477 $ 51 $ 4,358
Financial services**........ 28,287 9,870 9,777 5,521 3,119
Total.......................... 34,254 10,951 10,254 5,572 7,477
Interest relating to debt***... 4,940 650 946 745 2,599
Accounts payable............... 3,128 2,998
89 38
3
Capital leases..................... 37
23
9
3
2
Off-balance-sheet
Purchase obligations........... 3,487 3,444
43
Operating leases................. 413 130 156 79 48
Total................................... $ 46,259 $ 18,196 $ 11,497 $ 6,437 $ 10,129
* Principal payments.
** Securitization borrowings of $4,109 million classified as short-term on the balance
sheet related to the securitization of retail notes are included in this table based on
the expected payment schedule (see Note 18).
*** Includes projected payments related to interest rate swaps.
the company records the sale. Changes in the mix and types of
programs affect these estimates, which are reviewed quarterly.
The sales incentive accruals at October 31, 2013, 2012
and 2011 were $1,531 million, $1,453 million and $1,122
million, respectively. The increase in 2013 and 2012 were
primarily due to higher sales volumes.
The estimation of the sales incentive accrual is impacted
by many assumptions. One of the key assumptions is the
historical percent of sales incentive costs to retail sales from
dealers. Over the last five fiscal years, this percent has varied
by an average of approximately plus or minus .7 percent,
compared to the average sales incentive costs to retail sales
percent during that period. Holding other assumptions constant,
if this estimated cost experience percent were to increase or
decrease .7 percent, the sales incentive accrual at October 31,
2013 would increase or decrease by approximately $60 million.
Product Warranties
At the time a sale to a dealer is recognized, the company
records the estimated future warranty costs. The company
generally determines its total warranty liability by applying
historical claims rate experience to the estimated amount of
equipment that has been sold and is still under warranty based
on dealer inventories and retail sales. The historical claims rate
is primarily determined by a review of five-year claims costs
and consideration of current quality developments. Variances in
claims experience and the type of warranty programs affect
these estimates, which are reviewed quarterly.
The product warranty accruals, excluding extended
warranty unamortized premiums, at October 31, 2013, 2012
and 2011 were $822 million, $733 million and $662 million,
respectively. The changes were primarily due to higher sales
volumes in 2013 and 2012.
Estimates used to determine the product warranty accruals
are significantly affected by the historical percent of warranty
claims costs to sales. Over the last five fiscal years, this percent
has varied by an average of approximately plus or minus .08
percent, compared to the average warranty costs to sales percent
during that period. Holding other assumptions constant, if this
estimated cost experience percent were to increase or decrease
.08 percent, the warranty accrual at October 31, 2013 would
increase or decrease by approximately $35 million.
Postretirement Benefit Obligations
Pension obligations and other postretirement employee
benefit (OPEB) obligations are based on various assumptions
used by the companys actuaries in calculating these amounts.
These assumptions include discount rates, health care cost trend
rates, expected return on plan assets, compensation increases,
retirement rates, mortality rates and other factors. Actual results
that differ from the assumptions and changes in assumptions
affect future expenses and obligations.
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Goodwill
Goodwill is not amortized and is tested for impairment annually
and when events or circumstances change such that it is more
likely than not that the fair value of a reporting unit is reduced
below its carrying amount. The end of the third quarter is the
annual measurement date. To test for goodwill impairment,
the carrying value of each reporting unit is compared with its
fair value. If the carrying value of the goodwill is considered
impaired, a loss is recognized based on the amount by which the
carrying value exceeds the implied fair value of the goodwill.
An estimate of the fair value of the reporting unit is
determined through a combination of comparable market values
for similar businesses and discounted cash flows. These estimates
can change significantly based on such factors as the reporting
units financial performance, economic conditions, interest
rates, growth rates, pricing, changes in business strategies and
competition.
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For the Years Ended October 31, 2013, 2012 and 2011
(In millions of dollars)
2013 2012
2011
________
________
________
Total
...................................................................................................................................................... 37,795.4 36,157.1 32,012.5
Costs and Expenses
Cost of sales............................................................................................................................................... 25,667.3 25,007.8 21,919.4
Research and development expenses........................................................................................................... 1,477.3 1,433.6 1,226.2
Selling, administrative and general expenses................................................................................................ 3,605.5 3,417.0 3,168.7
Interest expense.......................................................................................................................................... 741.3 782.8 759.4
Other operating expenses............................................................................................................................ 820.6 781.5 716.0
Total
...................................................................................................................................................... 32,312.0 31,422.7 27,789.7
Income of Consolidated Group before Income Taxes........................................................................... 5,483.4 4,734.4 4,222.8
Provision for income taxes........................................................................................................................... 1,945.9 1,659.4 1,423.6
Income of Consolidated Group............................................................................................................... 3,537.5 3,075.0 2,799.2
Equity in income (loss) of unconsolidated affiliates........................................................................................ .1 (3.4) 8.6
Net Income............................................................................................................................................... 3,537.6 3,071.6 2,807.8
Less: Net income attributable to noncontrolling interests........................................................................... .3 6.9 7.9
Net Income Attributable to Deere & Company....................................................................................... $ 3,537.3
$ 3,064.7
$ 2,799.9
$ 7.72
$ 7.63
$ 1.79
$ 6.71
$ 6.63
$ 1.52
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2013 2012
2011
________
________ _________
$ 3,071.6
$ 2,807.8
$ 2,171.2
$ 2,501.5
The notes to consolidated financial statements are an integral part of this statement.
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2013 2012
__________
__________
ASSETS
Cash and cash equivalents..................................................................................................................................... $ 3,504.0
$ 4,652.2
Marketable securities............................................................................................................................................. 1,624.8 1,470.4
Receivables from unconsolidated affiliates............................................................................................................... 31.2 59.7
Trade accounts and notes receivable - net............................................................................................................... 3,758.2 3,799.1
Financing receivables - net..................................................................................................................................... 25,632.7 22,159.1
Financing receivables securitized - net.................................................................................................................... 4,153.1 3,617.6
Other receivables................................................................................................................................................... 1,464.0 1,790.9
Equipment on operating leases - net....................................................................................................................... 3,152.2 2,527.8
Inventories............................................................................................................................................................. 4,934.7 5,170.0
Property and equipment - net................................................................................................................................. 5,466.9 5,011.9
Investments in unconsolidated affiliates................................................................................................................... 221.4 215.0
Goodwill................................................................................................................................................................. 844.8 921.2
Other intangible assets - net................................................................................................................................... 77.1 105.0
Retirement benefits................................................................................................................................................ 551.1 20.2
Deferred income taxes............................................................................................................................................ 2,325.4 3,280.4
Other assets........................................................................................................................................................... 1,274.7 1,465.3
Assets held for sale................................................................................................................................................ 505.0
Total Assets.........................................................................................................................................................
$ 59,521.3
$ 56,265.8
$ 59,521.3
$ 56,265.8
The notes to consolidated financial statements are an integral part of this statement.
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2013 2012
2011
__________
_________
_________
$ 4,652.2
$ 3,647.2
The notes to consolidated financial statements are an integral part of this statement.
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Accumulated
Total
Other
Non
Stockholders Common
Treasury Retained Comprehensive controlling
Equity
Stock
Stock
Earnings
Income (Loss)
Interests
Balance October 31, 2010............................................
$ 6,303.4
$ 3,106.3
$ (5,789.5) $ 12,353.1
$ (3,379.6)
$ 13.1
6,814.9 3,251.7
(7,292.8) 14,519.4
(3,678.0)
14.6
6,862.0 3,352.2
(8,813.8) 16,875.2
(4,571.5)
19.9
$ 10,267.7
$ 3,524.2
$ (10,210.9) $ 19,645.6
$ (2,693.1)
$ 1.9
The notes to consolidated financial statements are an integral part of this statement.
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Structure of Operations
The information in the notes and related commentary are
presented in a format which includes data grouped as follows:
Equipment Operations Includes the companys
agriculture and turf operations and construction and forestry
operations with financial services reflected on the equity basis.
Financial Services Includes primarily the companys
financing operations.
Consolidated Represents the consolidation of the
equipment operations and financial services. References to
Deere & Company or the company refer to the entire
enterprise.
Principles of Consolidation
The consolidated financial statements represent primarily the
consolidation of all companies in which Deere & Company
has a controlling interest. Certain variable interest entities
(VIEs) are consolidated since the company has both the power
to direct the activities that most significantly impact the VIEs
economic performance and the obligation to absorb losses or
the right to receive benefits that could potentially be significant
to the VIEs. Deere & Company records its investment in each
unconsolidated affiliated company (generally 20 to 50 percent
ownership) at its related equity in the net assets of such affiliate
(see Note 10). Other investments (less than 20 percent ownership) are recorded at cost.
Variable Interest Entities
The company was previously the primary beneficiary of and
consolidated a supplier that was a VIE. The company had both
the power to direct the activities of the VIE that most significantly impacted the VIEs economic performance and the
obligation to absorb losses or the right to receive benefits that
could potentially be significant to the VIE. In the first quarter
of 2013, the entity was deconsolidated since the company no
longer has a variable interest in the supplier. No related parties
were involved in the deconsolidation. The effect on the
financial statements for the deconsolidation was a decrease in
assets, liabilities and noncontrolling interests of approximately
$26 million, $15 million and $11 million, respectively, with no
gain or loss. No additional support beyond what was previously
contractually required was provided during any periods
presented. The VIE produced blended fertilizer and other lawn
care products for the agriculture and turf segment.
The assets and liabilities of this supplier VIE consisted of
the following last year at October 31 in millions of dollars:
2012
Cash and cash equivalents.............................................................. $ 26
Intercompany receivables................................................................
7
Inventories.....................................................................................
25
Property and equipment net.........................................................
2
Other assets................................................................................... 5
Total assets.................................................................................... $ 65
Short-term borrowings.................................................................... $
5
Accounts payable and accrued expenses......................................... 48
Total liabilities................................................................................. $ 53
32
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Sales Taxes
The company collects and remits taxes assessed by different
governmental authorities that are both imposed on and
concurrent with revenue producing transactions between the
company and its customers. These taxes may include sales, use,
value-added and some excise taxes. The company reports the
collection of these taxes on a net basis (excluded from revenues).
Shipping and Handling Costs
Shipping and handling costs related to the sales of the companys
equipment are included in cost of sales.
Advertising Costs
Advertising costs are charged to expense as incurred. This expense
was $183 million in 2013, $177 million in 2012 and $163 million
in 2011.
Depreciation and Amortization
Property and equipment, capitalized software and other
intangible assets are stated at cost less accumulated depreciation
or amortization. These assets are depreciated over their estimated useful lives generally using the straight-line method.
Equipment on operating leases is depreciated over the terms of
the leases using the straight-line method. Property and equipment expenditures for new and revised products, increased
capacity and the replacement or major renewal of significant
items are capitalized. Expenditures for maintenance, repairs and
minor renewals are generally charged to expense as incurred.
Securitization of Receivables
Certain financing receivables are periodically transferred to
special purpose entities (SPEs) in securitization transactions
(see Note 13). These securitizations qualify as collateral for
secured borrowings and no gains or losses are recognized at the
time of securitization. The receivables remain on the balance
sheet and are classified as Financing receivables securitized
- net. The company recognizes finance income over the lives
of these receivables using the interest method.
Receivables and Allowances
All financing and trade receivables are reported on the balance
sheet at outstanding principal adjusted for any charge-offs,
the allowance for credit losses, and any deferred fees or costs on
originated financing receivables. Allowances for credit losses are
maintained in amounts considered to be appropriate in relation
to the receivables outstanding based on collection experience,
economic conditions and credit risk quality. Receivables are
written-off to the allowance when the account is considered
uncollectible.
Impairment of Long-Lived Assets, Goodwill and
Other Intangible Assets
The company evaluates the carrying value of long-lived assets
(including property and equipment, goodwill and other
intangible assets) when events or circumstances warrant such
a review. Goodwill and intangible assets with indefinite lives
are tested for impairment annually at the end of the third fiscal
quarter each year, or more often if events or circumstances
indicate a reduction in the fair value below the carrying value.
Goodwill is allocated and reviewed for impairment by reporting
units, which consist primarily of the operating segments and
certain other reporting units. The goodwill is allocated to the
33
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34
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5. SPECIAL ITEMS
Impairments
In 2013, the company recorded a non-cash charge for the
impairment of long-lived assets of $57 million pretax, or $51
million after-tax. This consists of $50 million pretax, or $44
million after-tax, in the third quarter and $7 million pretax and
after-tax in the fourth quarter, related to the companys Water
operations, which are included in the agriculture and turf
operating segment. The total pretax impairment loss consisted
of $50 million recorded in cost of sales and $7 million in selling,
administrative and general expenses. The impairments were
due to a decline in the forecasted financial performance and
a review of strategic options for the business (see Note 26).
In the fourth quarter of 2013, the company recorded a
non-cash charge of $45 million pretax and after-tax in other
operating expenses for an impairment to write the Landscapes
operations down to realizable value. These operations were
included in the agriculture and turf operating segment and
classified as held for sale at October 31, 2013 (see Note 4).
In the fourth quarter of 2012, the company recorded a
non-cash charge in cost of sales for the impairment of goodwill
of $33 million pretax, or $31 million after-tax, related to the
companys Water operations. The goodwill impairment in
2012 was due to a decline in the forecasted financial performance as a result of more complex integration activities.
The goodwill in this reporting unit was completely written off
in 2012 (see Note 26).
6. CASH FLOW INFORMATION
Interest:
Equipment operations............................. $ 511 $ 420 $ 370
Financial services................................... 502 638 616
Intercompany eliminations...................... (247) (248) (231)
Consolidated........................................... $ 766 $ 810 $ 755
Income taxes:
Equipment operations............................. $ 1,863 $ 1,704 $ 1,379
Financial services................................... 270 207 336
Intercompany eliminations...................... (179) (167) (266)
Consolidated........................................... $ 1,954 $ 1,744 $ 1,449
Pensions
Service cost............................................... $ 273 $ 220 $ 197
Interest cost............................................... 439 465 492
Expected return on plan assets................... (778) (787) (793)
Amortization of actuarial losses................... 265 202 148
Amortization of prior service cost................ 12 47 46
Early-retirement benefits.............................
3
Settlements/curtailments............................ 2 10 1
Net cost.................................................... $ 213 $ 160 $ 91
Weighted-average assumptions
Discount rates............................................ 3.8% 4.4% 5.0%
Rate of compensation increase.................... 3.9% 3.9% 3.9%
Expected long-term rates of return.............. 7.8% 8.0% 8.1%
35
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Pensions
Net cost ............................................................... $ 213 $ 160 $ 91
Retirement benefit adjustments included in
other comprehensive (income) loss:
Net actuarial (gain) loss................................ (1,481) 999 848
Prior service (credit) cost.............................. (26)
5 9
Amortization of actuarial loss........................ (265) (202) (148)
Amortization of prior service cost.................. (12) (47) (46)
Settlements/curtailments............................. (2) (10) (1)
Total (gain) loss recognized in other
comprehensive (income) loss............... (1,786) 745 662
Total recognized in comprehensive
(income) loss................................................... $ (1,573) $ 905 $ 753
36
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Health Care
and
Life Insurance
$ 199
$ 34
Health Care
and
Life Insurance*
2014................................................................ $ 690
$ 321
2015................................................................ 673 331
2016................................................................ 672 339
2017................................................................ 679 357
2018................................................................ 682 362
2019 to 2023................................................... 3,467 1,831
* Net of prescription drug group benefit subsidy under Medicare Part D.
37
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Total
Level 1
Level 2 Level 3
Total
Level 1
Level 2 Level 3
* Includes contracts for interest rates of $749 million, foreign currency of $10 million,
equity of $9 million and other of $1 million.
** Includes contracts for interest rates of $563 million, foreign currency of $22 million
and other of $6 million.
* Includes contracts for interest rates of $707 million, foreign currency of $8 million
and other of $6 million.
** Includes contracts for interest rates of $418 million, foreign currency of $12 million
and other of $24 million.
The fair values of the health care assets at October 31, 2013
follow in millions of dollars:
The fair values of the health care assets at October 31, 2012
follow in millions of dollars:
Total
Level 1
Level 2 Level 3
Total
Level 1
Level 2 Level 3
* Includes contracts for interest rates of $3 million and foreign currency of $1 million.
** Includes contracts for foreign currency of $1 million.
* Includes contracts for interest rates of $7 million and foreign currency of $1 million.
** Includes contracts for foreign currency of $1 million.
38
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$ 443
$ 1,464
$ 155
Deere 2013.indd 39
39
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Current:
U.S.:
Federal...................................................... $
1,405 $
1,277 $ 928
State......................................................... 145 119 144
Foreign.......................................................... 569 355 520
Total current.......................................... 2,119 1,751 1,592
Deferred:
U.S.:
Federal...................................................... (117) (76) (135)
State......................................................... (11) (7) (28)
Foreign.......................................................... (45) (9) (5)
Total deferred........................................ (173) (92) (168)
Provision for income taxes............................ $ 1,946 $ 1,659 $ 1,424
2013 2012
_______________
________________
Deferred Deferred Deferred Deferred
Tax
Tax
Tax
Tax
Assets Liabilities Assets Liabilities
Other postretirement
benefit liabilities........................ $ 1,777 $ 2,136
Tax over book depreciation............. $ 582 $ 606
Accrual for sales allowances.......... 602 546
Pension liabilities - net................... 457
Lease transactions........................ 424 317
Pension asset - net........................ 137
Tax loss and tax credit
carryforwards........................... 371 249
Accrual for employee benefits........ 234 249
Share-based compensation........... 142 133
Inventory....................................... 161 131
Goodwill and other
intangible assets....................... 100 110
Allowance for credit losses............. 69 92
Deferred gains on distributed
foreign earnings........................ 26 84
Deferred compensation.................. 44 40
Undistributed foreign earnings........ 26 11
Other items................................... 419 157 443 115
Less valuation allowances.............. (254) (285)
Deferred income tax
assets and liabilities............. $ 3,591 $ 1,426 $ 4,275 $ 1,159
40
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and 2012, the liability for accrued interest and penalties totaled
$49 million and $39 million and the receivable for interest was
$2 million and $1 million, respectively.
9. Other income and other operating expenses
Other income
Revenues from services.............................. $ 256 $ 233 $ 217
Insurance premiums and fees earned.......... 252 248 236
Investment income..................................... 15 14 11
Other......................................................... 159 180 160
Total...................................................... $ 682 $ 675 $ 624
Other operating expenses
Depreciation of equipment on
operating leases..................................... $ 389 $ 339 $ 306
Insurance claims and expenses................... 204 245 193
Cost of services.......................................... 143 122 115
Other......................................................... 85 76 102
Total...................................................... $ 821 $ 782 $ 716
41
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2013
2012
$ 17
$ 9 $ 1,625
2012
U.S. government debt securities.... $ 1,193
$
7 $ 1,200
Municipal debt securities.............. 35
3
38
Corporate debt securities.............. 100 10 110
Mortgage-backed securities*........ 117 6 $ 1 122
Marketable securities............... $ 1,445
$ 26
$ 1 $ 1,470
Amortized Fair
Cost Value
$ 1,605
2013 2012
$ 3,799
42
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previous table. On a geographic basis, there is not a disproportionate concentration of credit risk in any area.
Financing Receivables
Financing receivables at October 31 consisted of the following
in millions of dollars:
2013 2012
_________________
_________________
Unrestricted/Securitized Unrestricted/Securitized
Retail notes:
Equipment:
Agriculture and turf........... $
16,209 $
3,602 $
14,144 $
3,126
Construction and
forestry......................... 1,449 607 1,091 553
Total................................. 17,658 4,209
15,235 3,679
Wholesale notes........................ 4,802 3,888
Revolving charge accounts......... 2,593 2,488
Financing leases
(direct and sales-type)........... 1,513 1,411
Operating loans......................... 32 42
Total financing receivables..... 26,598 4,209 23,064 3,679
Less:
Unearned finance income:
Equipment notes............... 665 42 619
Financing leases............... 141 126
44
2013 2012
Unrestricted Unrestricted
Retail notes*:
Equipment:
Agriculture and turf....................... $ 2,042
$ 1,810
Construction and forestry.............. 364 313
Total......................................... 2,406 2,123
Wholesale notes.................................... 4,802 3,888
Sales-type leases.................................. 826 836
Total............................................. $ 8,034
2013 2012
Unrestricted Unrestricted
Less:
Unearned finance income:
Equipment notes........................... $ 191
$ 191
Sales-type leases.......................... 58 61
Total......................................... 249 252
Financing receivables
related to the companys
sales of equipment........................ $ 7,785
$ 6,595
2013 2012
_________________
__________________
Unrestricted/Securitized Unrestricted/Securitized
Due in months:
0 12.............................. $ 13,343 $ 1,663
$ 11,486 $ 1,437
13 24.............................. 4,879 1,177 4,257 1,004
25 36.............................. 3,750 808 3,232 712
37 48.............................. 2,620 422 2,278 399
49 60.............................. 1,610 130 1,356 120
Thereafter........................... 396 9 455 7
Total...................................... $ 26,598 $ 4,209
$ 23,064 $ 3,679
$ 6,847
(continued)
43
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Total
Past Due
Retail Notes:
Agriculture and turf.......
$ 75 $ 26 $ 20 $
121
Construction and
forestry..................... 39 14 9 62
Other:
Agriculture and turf....... 28 9 5 42
Construction and
forestry..................... 12 4 3 19
Total ................................ $ 154
$ 53
$ 37
$ 244
Total Total
Total Non- Financing
Past Due Performing Current Receivables
Retail Notes:
Agriculture and turf....... $ 121 $ 102 $ 18,942 $ 19,165
Construction and
forestry..................... 62 12 1,921 1,995
Other:
Agriculture and turf....... 42 13 7,613 7,668
Construction and
forestry..................... 19 3 1,109 1,131
Total......................... $ 244
$ 130
$ 29,585 29,959
Total
Past Due
Retail Notes:
Agriculture and turf.......
$ 60 $ 25 $ 17 $
102
Construction and
forestry..................... 39 18 9 66
Other:
Agriculture and turf....... 21 6 3 30
Construction and
forestry..................... 8 2 2 12
Total ................................ $ 128
(continued)
$ 51
$ 31
$ 210
Total Total
Total Non- Financing
Past Due Performing Current Receivables
Retail Notes:
Agriculture and turf....... $ 102
$ 117
$ 16,432
$ 16,651
Construction and
forestry..................... 66 13
1,521
1,600
Other:
Agriculture and turf....... 30 11
6,464
6,505
Construction and
forestry..................... 12 3 1,183 1,198
Total......................... $ 210
$ 144
$ 25,600 25,954
An analysis of the allowance for credit losses and investment in financing receivables follows in millions of dollars:
Revolving
Retail Charge
Notes Accounts Other Total
2013
Allowance:
Beginning of year
balance.........................
$ 110 $ 40 $ 27 $
177
Provision (credit)........... (2) 5 7 10
Write-offs..................... (11) (21) (3) (35)
Recoveries.................... 9 17 1 27
Translation
adjustments.............. (5) (1) (6)
End of year balance*.......... $ 101
$ 41
$ 31
$ 173
Financing receivables:
End of year balance........... $ 21,160
$ 2,593
$ 6,206
$ 29,959
Balance individually
evaluated.................. $ 21 $ 33
$ 54
2012
Allowance:
Beginning of year
balance.........................
$
130 $ 40 $ 27 $
197
Provision (credit)........... (12) 8 3 (1)
Write-offs..................... (8) (30) (4) (42)
Recoveries.................... 10 22 1 33
Translation
adjustments.............. (10) (10)
End of year balance*.......... $ 110
$ 40
$ 27
$ 177
Financing receivables:
End of year balance........... $ 18,251
$ 2,488
$ 5,215
$ 25,954
Balance individually
evaluated.................. $ 11
$ 1
$ 1
$ 13
(continued)
44
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Revolving
Retail Charge
Notes Accounts Other Total
Unpaid Average
Recorded Principal Specific Recorded
Investment Balance Allowance Investment
2011
Allowance:
Beginning of year
balance.........................
$
144 $ 44 $ 37 $
225
Provision (credit)........... 3 8 (2) 9
Write-offs..................... (29) (40) (10) (79)
Recoveries.................... 12 28 2 42
2012*
Receivables with
specific allowance**......
$ 1 $ 1 $ 1 $ 1
Receivables without a
specific allowance***..... 9 9 10
$ 40
$ 27
$ 197
Financing receivables:
End of year balance........... $ 16,296
$ 2,518
$ 4,212
$ 23,026
Balance individually
evaluated.................. $ 12
$ 11
$ 23
Total ................................ $ 10
$ 10
$ 1
$ 11
$ 6
$ 1
$ 6
$ 4
$ 5
2013 2012
$ 1,791
Total ................................ $ 26
$ 26
$ 4
$ 27
$ 23
$ 4
$ 24
$ 3
$ 3
(continued)
Deere 2013.indd 45
45
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46
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The total assets of unconsolidated VIEs related to securitizations were approximately $42 billion at October 31, 2013.
The components of consolidated restricted assets related to
secured borrowings in securitization transactions at October 31
were as follows in millions of dollars:
2013 2012
2013 2012
$ 3,576
12/6/13 4:46 PM
2013 2012
$ 5,170
$ 5,012
* Weighted-averages
47
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48
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2013 2012
Equipment Operations
Accounts payable:
Trade payables.......................................................... $ 2,174 $ 2,287
Dividends payable..................................................... 192 179
Other........................................................................ 197 147
Accrued expenses:
Dealer sales discounts............................................... 1,491 1,413
Employee benefits..................................................... 1,408 1,337
Product warranties.................................................... 822 733
Unearned revenue..................................................... 368 282
Other........................................................................ 1,339 1,301
Total..................................................................... 7,991 7,679
Financial Services
Accounts payable:
Deposits withheld from dealers and merchants........... 197 194
Other........................................................................ 368 505
Accrued expenses:
Unearned revenue..................................................... 551 452
Accrued interest........................................................ 130 160
Employee benefits.....................................................
86 69
Insurance claims reserve*.......................................... 197 449
Other........................................................................ 321 301
Total..................................................................... 1,850 2,130
Eliminations**................................................................ 867 820
Accounts payable and accrued expenses................ $ 8,974 $ 8,989
* See Note 9.
** Primarily trade receivable valuation accounts which are reclassified as accrued
expenses by the equipment operations as a result of their trade receivables being
sold to financial services.
2013 2012
Equipment Operations
Notes and debentures:
6.95% notes due 2014: ($700 principal)................... $ 718*
4.375% notes due 2019............................................ $ 750 750
8-1/2% debentures due 2022................................... 105 105
2.60% notes due 2022............................................. 1,000 1,000
6.55% debentures due 2028..................................... 200 200
5.375% notes due 2029........................................... 500 500
8.10% debentures due 2030..................................... 250 250
7.125% notes due 2031............................................ 300 300
3.90% notes due 2042............................................. 1,250 1,250
Other notes............................................................... 516 372
2013 2012
Financial Services
Notes and debentures:
Medium-term notes due 2014 2023:
(principal $15,055 - 2013, $15,242 - 2012)
Average interest rates of 1.2% 2013,
1.6% 2012........................................................ $ 15,316* $ 15,737*
2.75% senior note due 2022: ($500 principal)
Swapped $500 to variable interest rate
of .9% 2013, 1.1% 2012.................................
491* 518*
Other notes............................................................... 900 753
Total..................................................................... 16,707 17,008
Long-term borrowings**........................................... $ 21,578 $ 22,453
* Includes unamortized fair value adjustments related to interest rate swaps.
** All interest rates are as of year end.
49
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Warranty Liability/
Unearned Premiums
________________
2013 2012
Number of
Shares Issued Amount
$ 3,524
50
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Grant-Date
Shares
Fair Value*
Service based only
Nonvested at beginning of year.............................. .4
$ 66.55
Granted................................................................. .1 86.88
Vested.................................................................. (.2) 57.15
Nonvested at end of year....................................... .3 81.00
Performance/service and
market/service based
Nonvested at beginning of year.............................. .3
$ 86.39
Granted................................................................. .1 93.74
$ 290.3
Deere 2013.indd 51
The performance/service based units are subject to a performance metric based on the companys compound annual
revenue growth rate, compared to a benchmark group of
companies over the vesting period. The market/service based
units are subject to a market related metric based on total
shareholder return, compared to the same benchmark group of
companies over the vesting period. The performance/service
based units and the market/service based units both award
common stock in a range of zero to 200 percent for each unit
granted based on the level of the metric achieved and do not
include dividend equivalent payments over the vesting period.
The weighted-average fair values of the service based only units
at the grant dates during 2013, 2012 and 2011 were $86.88,
$75.27 and $81.90 per unit, respectively, based on the market
price of a share of underlying common stock. The fair value of
the performance/service based units at the grant date during
2013, 2012 and 2011 were $80.73, $70.14 and $76.17 per unit,
respectively, based on the market price of a share of underlying
common stock excluding dividends. The fair value of the
market/service based units at the grant date during 2013, 2012
and 2011 were $106.75, $92.85 and $107.31 per unit, respectively, based on a lattice valuation model excluding dividends.
The companys nonvested restricted shares at October 31,
2013 and changes during 2013 in millions of shares follow:
51
12/6/13 4:46 PM
2013
Retirement benefits adjustment:
Net actuarial gain and
prior service credit............................. $ 2,674 $ (978) $ 1,696
Reclassification of actuarial loss
and prior service cost to net income.... 412 (158) 254
$ 113
$ (3)
$ 6
2011
Retirement benefits adjustment:
Net actuarial loss and
prior service cost...............................
$
(989) $ 368 $
(621)
Reclassification of actuarial loss
and prior service cost to net income.... 450 (167) 283
Net unrealized loss................................. (539) 201 (338)
Cumulative translation adjustment............... 14 4 18
Unrealized gain on derivatives:
Hedging gain.......................................... 31 (11) 20
Reclassification of realized loss
to net income..................................... 1 1
Net unrealized gain................................. 32 (11) 21
Unrealized holding gain and net
unrealized gain on investments............... 2 (1) 1
Total other comprehensive income (loss)..... $ (491)
$ 193 $ (298)
2012
Retirement benefits adjustment:
Net actuarial loss and
prior service cost...............................
$
(1,341) $ 477 $
(864)
Reclassification of actuarial loss
and prior service cost to net income.... 380 (140) 240
Net unrealized loss................................. (961) 337 (624)
Cumulative translation adjustment............... (272) 2 (270)
Unrealized loss on derivatives:
Hedging loss.......................................... (61) 21 (40)
Reclassification of realized loss
to net income..................................... 54 (19) 35
Net unrealized loss................................. (7) 2 (5)
Unrealized holding gain and net
unrealized gain on investments............... 7 (2) 5
Total other comprehensive income (loss)..... $ (1,233)
(continued)
$ 339 $ (894)
$ (1,132) $ 1,879
2013 2012
_______________
_______________
Carrying Fair Carrying Fair
Value Value* Value Value*
52
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The
companys
derivative financial
Foreign exchange contracts..................................... 32 17
Cross-currency interest rate contracts...................... 15 11
instruments consist of interest rate swaps and caps, foreign
currency forwards and swaps and cross-currency interest rate
Total assets***................................................................ $ 2,019 $ 2,107
swaps. The portfolio is valued based on an income approach
Accounts payable and accrued expenses
(discounted cash flow) using market observable inputs,
Derivatives:
including swap curves and both forward and spot exchange
Interest rate contracts............................................. $ 120 $ 72
rates for currencies.
Foreign exchange contracts..................................... 42 18
Financing Receivables Specific reserve impairments are
Cross-currency interest rate contracts...................... 17 59
based
on the fair value of the collateral, which is measured
Total liabilities.................................................................. $ 179 $ 149
using a market approach (appraisal values or realizable values).
* All measurements above were Level 2 measurements except for Level 1 measureInputs include a selection of realizable values (see Note 12).
ments of U.S. government debt securities of $1,247 million and $1,139 million at
Goodwill The impairment is based on the implied fair
October 31, 2013 and 2012, respectively, and the equity fund of $20 million at
October 31, 2013. There were no transfers between Level 1 and Level 2 during
value measured as the difference between the fair value of the
2013, 2012 and 2011.
reporting unit and the fair value of the units identifiable net
** Primarily issued by U.S. government sponsored enterprises.
assets. An estimate of the fair value of the reporting unit is
*** Excluded from this table were cash equivalents, which were carried at cost that
approximates fair value. The cash equivalents consist primarily of money market
determined by an income approach (discounted cash flows),
funds that were Level 1 measurements.
which includes inputs such as interest rates.
Property and Equipment-Net The impairments are
Fair value, nonrecurring, Level 3 measurements from
measured
at the lower of the carrying amount, or fair value.
impairments at October 31 in millions of dollars follow:
The valuations were based on a cost approach. The inputs
Fair Value*
Losses*
______________
_____________________
include replacement cost estimates adjusted for physical
2013 2012 2013 2012 2011
deterioration and economic obsolescence.
Property and
Other Intangible Assets-Net The impairments are
equipment net........... $ 36 $ 48
measured at the lower of the carrying amount, or fair value.
The valuations were based on an income approach (discounted
Goodwill........................... $ 33
cash flows). The inputs include estimates of future cash flows.
Other intangible
assets net.................
$ 9
* See financing receivables with specific allowances in Note 12 that were not
significant. See Note 5 for impairments.
53
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2013 2012
54
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2012
Other Assets
Designated as hedging instruments:
Interest rate contracts.............................................. $ 295 $ 536
Cross-currency interest rate contracts...................... 14 10
Total designated.................................................. 309 546
Not designated as hedging instruments:
Interest rate contracts..............................................
52
73
Foreign exchange contracts.....................................
32
17
Cross-currency interest rate contracts...................... 1 1
Total not designated............................................ 85 91
Total derivatives....................................................... $ 394
$ 637
$ 149
(15) (28)
(5)
58 (33)
36
**
**
**
55
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Interest income*
Agriculture and turf..................................... $ 24 $ 29 $ 23
Construction and forestry............................
2
2
3
Financial services....................................... 1,668 1,610 1,581
Corporate...................................................
55
43
47
Intercompany............................................. (247) (248) (231)
OPERATING SEGMENTS
* Does not include finance rental income for equipment on operating leases.
2013
2012
2011
Operating profit
Agriculture and turf..................................... $ 4,680 $ 3,921 $ 3,447
Construction and forestry............................ 378 476 392
Financial services*...................................... 870 712 725
Total operating profit.............................. 5,928 5,109 4,564
Interest income...........................................
55
43
47
Investment income.....................................
2
2
Interest expense......................................... (297) (231) (191)
Foreign exchange losses from equipment
operations financing activities................
(8)
(11)
(11)
Corporate expenses net........................... (197) (181) (177)
Income taxes.............................................. (1,946) (1,659) (1,424)
Total...................................................... (2,391) (2,037) (1,756)
Net income................................................. 3,537 3,072 2,808
Less: Net income attributable to
noncontrolling interests........................... 7 8
Net income attributable to
Deere & Company.................................. $ 3,537 $ 3,065 $ 2,800
* Operating profit of the financial services business segment includes the effect of its
interest expense and foreign exchange gains or losses.
(continued)
OPERATING SEGMENTS
2013
2012
2011
Capital additions
Agriculture and turf..................................... $ 981 $ 1,145 $ 909
Construction and forestry............................ 174 228 148
Financial services....................................... 3 3 2
Total...................................................... $ 1,158 $ 1,376 $ 1,059
Investments in unconsolidated affiliates
Agriculture and turf..................................... $ 24 $ 32 $ 35
Construction and forestry............................ 187 174 159
Financial services....................................... 10 9 8
Total...................................................... $ 221 $ 215 $ 202
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2013
2012
2011
Operating profit
U.S. and Canada:
Equipment operations......................... $ 4,062 $ 3,836 $ 2,898
Financial services............................... 706 566 593
Total.............................................. 4,768 4,402 3,491
Outside U.S. and Canada:
Equipment operations......................... 996
561
941
Financial services............................... 164 146 132
Total.............................................. 1,160 707 1,073
Total.......................................................... $ 5,928 $ 5,109 $ 4,564
Property and equipment
U.S............................................................ $ 2,997 $ 2,742 $ 2,329
Germany.................................................... 647
568
572
Other countries.......................................... 1,823 1,702 1,451
Total.................................................. $ 5,467 $ 5,012 $ 4,352
Common stock per share sales prices from New York Stock
Exchange composite transactions quotations follow:
2013*
Net sales and revenues..................... $ 7,421 $ 10,913 $ 10,010 $ 9,451
Net sales.......................................... 6,793 10,265 9,316 8,624
Gross profit...................................... 1,778 2,783 2,478 2,292
Income before income taxes.............. 946 1,744 1,549 1,244
Net income attributable
to Deere & Company..................... 650 1,084 996 807
Per share data:
Basic........................................... 1.67 2.79 2.58 2.13
Diluted......................................... 1.65 2.76 2.56 2.11
Dividends declared....................... .46 .51 .51 .51
Dividends paid.............................. .46 .46 .51 .51
2012*
Net sales and revenues..................... $ 6,766 $ 10,009 $ 9,590 $ 9,792
Net sales.......................................... 6,119 9,405 8,930 9,047
Gross profit...................................... 1,543 2,570 2,174 2,206
Income before income taxes.............. 800 1,597 1,215 1,122
Net income attributable
to Deere & Company..................... 533 1,056 788 688
Per share data:
Basic........................................... 1.32 2.64 2.00 1.76
Diluted......................................... 1.30 2.61 1.98 1.75
Dividends declared....................... .41 .46 .46 .46
Dividends paid.............................. .41 .41 .46 .46
Net income per share for each quarter must be computed independently. As a result,
their sum may not equal the total net income per share for the year.
* See Note 5 for Special Items.
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1.1
1.4
1.2
$ 565.0 $ 460.3
$ 471.0
58
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$ 28,312.2
$ 38,646.0
$ 34,495.5
59
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EQUIPMENT OPERATIONS*
2013
2012
2011
__________ __________
__________
FINANCIAL SERVICES
2013 2012
2011
_________ _________ _________
$ 3,907.9
$ 3,187.5
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2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
$ 36,157
$ 32,013
$ 26,005
$ 23,112
$ 28,438
$ 24,082
$ 22,148
$ 21,191
$ 19,204
Net sales............................................................
34,998
33,501
29,466
23,573
20,756
25,803
21,489
19,884
19,401
17,673
Finance and interest income............................... 2,115 1,981 1,923 1,825 1,842
2,068
2,055 1,777 1,440 1,196
Research and development expenses.................. 1,477 1,434 1,226 1,052 977 943 817 726 677 612
Selling, administrative and general expenses.......
3,606 3,417 3,169
2,969 2,781
2,960
2,621 2,324
2,086 1,984
Interest expense................................................. 741 783 759 811 1,042 1,137 1,151 1,018 761 592
Income from continuing operations*....................
3,537
3,065
2,800 1,865 873
2,053 1,822 1,453 1,414 1,398
Net income*.......................................................
3,537
3,065
2,800 1,865 873
2,053 1,822 1,694 1,447 1,406
Return on net sales.............................................
10.1% 9.1% 9.5% 7.9% 4.2% 8.0% 8.5% 8.5% 7.5% 8.0%
Return on beginning Deere & Company
stockholders equity.......................................
51.7%
45.1%
44.5%
38.7%
13.4%
28.7%
24.3%
24.7%
22.6%
35.1%
Comprehensive income (loss)*............................ 5,416 2,171
2,502 2,079
(1,333) 1,303
2,201 1,795 1,463
2,531
Income per share from
continuing operations basic*........................
$ 9.18 $ 7.72 $ 6.71 $ 4.40 $ 2.07 $ 4.76 $ 4.05 $ 3.11 $
2.90 $
2.82
diluted*...................... 9.09 7.63 6.63 4.35 2.06 4.70 4.00 3.08 2.87 2.76
Net income per share basic*............................ 9.18 7.72 6.71 4.40 2.07 4.76 4.05 3.63 2.97 2.84
diluted*.......................... 9.09 7.63 6.63 4.35 2.06 4.70 4.00 3.59 2.94 2.78
Dividends declared per share.............................. 1.99 1.79 1.52 1.16 1.12 1.06 .91 .78 .601/2 .53
Dividends paid per share..................................... 1.94 1.74 1.41 1.14 1.12 1.03 .851/2 .74 .59 .50
Average number of common
shares outstanding (in millions) basic...........
385.3 397.1 417.4 424.0
422.8 431.1
449.3
466.8
486.6
494.5
diluted.........
389.2 401.5 422.4 428.6 424.4
436.3
455.0 471.6
492.9
506.2
Total assets........................................................
$
59,521 $
56,266 $
48,207 $
43,267 $
41,133 $
38,735 $
38,576 $
34,720 $
33,637 $
28,754
Trade accounts and notes receivable net.......... 3,758 3,799 3,295 3,464 2,617 3,235 3,055 3,038 3,118 3,207
Financing receivables net.................................
25,633 22,159 19,924 17,682
15,255 16,017 15,631
14,004
12,869
11,233
Financing receivables securitized net................ 4,153 3,618 2,905 2,238 3,108 1,645 2,289 2,371 1,458
Equipment on operating leases net................... 3,152 2,528 2,150 1,936 1,733 1,639 1,705 1,494 1,336 1,297
Inventories......................................................... 4,935 5,170 4,371 3,063 2,397 3,042 2,337 1,957 2,135 1,999
Property and equipment net............................. 5,467 5,012 4,352 3,791 4,532 4,128 3,534 2,764 2,343 2,138
Short-term borrowings:
Equipment operations..................................... 1,080 425 528 85 490 218 130 282 678 312
Financial services........................................... 7,709 5,968 6,324 5,241 3,537 6,621 7,495 5,436 4,732 3,146
Total.......................................................... 8,789 6,393 6,852 5,326 4,027 6,839 7,625 5,718 5,410 3,458
Short-term securitization borrowings:
Financial services........................................... 4,109 3,575 2,777 2,209 3,132 1,682 2,344 2,403 1,474
Long-term borrowings:
Equipment operations..................................... 4,871 5,445 3,167 3,329 3,073 1,992 1,973 1,969 2,423 2,728
Financial services........................................... 16,707 17,008 13,793 13,486 14,319 11,907 9,825 9,615 9,316 8,362
Total.......................................................... 21,578
22,453
16,960 16,815 17,392
13,899 11,798 11,584
11,739 11,090
Total Deere & Company stockholders equity.......
10,266 6,842 6,800 6,290 4,819 6,533 7,156 7,491 6,852 6,393
Book value per share*.........................................
$ 27.46 $ 17.64 $ 16.75 $ 14.90 $ 11.39 $ 15.47 $ 16.28 $ 16.48 $
14.46 $ 12.95
Capital expenditures...........................................
$ 1,132 $
1,360 $ 1,050 $ 795 $ 767 $ 1,117 $ 1,025 $ 774 $ 512 $ 364
Number of employees (at year end)..................... 67,044
66,859 61,278
55,650 51,262
56,653 52,022 46,549
47,423
46,465
* Attributable to Deere & Company.
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STOCKHOLDER INFORMATION
LEADERSHIP TEAM
Positions as of December 31, 2013
ANNUAL MEETING
The annual meeting of company stockholders will be held
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TRANSFER AGENT & REGISTRAR
Send all correspondence, including address changes and
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STOCKHOLDER RELATIONS
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Stockholder Relations Department
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www.JohnDeere.com/Investors
INVESTOR RELATIONS
Securities analysts, portfolio managers and representatives
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Tony Huegel
Director, Investor Relations
Deere & Company
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www.JohnDeere.com/Investors
STOCK EXCHANGES
Deere & Company common stock is listed on the New York
Stock Exchange under the ticker symbol DE.
FORM 10-K
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and Exchange Commission is available online, or upon
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AUDITORS
Deloitte & Touche LLP
Chicago, Illinois
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services are trademarks or service marks of Deere & Company.
62
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BOARD OF DIRECTORS
From left: Vance D. Coffman, Gregory R. Page, Thomas H. Patrick, Sherry M. Smith, Richard B. Myers, Dipak C. Jain, Samuel R. Allen, Charles O. Holliday, Jr.,
Crandall C. Bowles, Joachim Milberg, Clayton M. Jones, and Aulana L. Peters, shown with a 644K Hybrid Wheel Loader at companys Davenport, Iowa, factory.
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